KOTA TINGGI: Proactive measures, setting of Key Performance Indicators (KPIs), a clear direction and a Profit Centre Thinking approach are crucial for the profitability of subsidiaries under the Ministry of Rural and Regional Development (KKDW), said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid, who is also Minister of Rural and Regional Development, said that in the first six months of this year, the performance of companies under KKDW surged rapidly due to governance and management practices aligned with the standards set by the Ministry of Finance, the Malaysian Anti-Corruption Commission, and Treasury Circulars.
He said that KKDW also added several Standard Operating Procedures (SOPs), especially in terms of Return on Investment (ROI), based on the principle of transforming the ministry’s companies from cost centres into profit centres.
“It has been found that all these companies have achieved the expected performance, with none reporting losses, although they have yet to make significant profits.
“I am confident that with the mergers and synergies I directed six months ago, we will see one hundred percent of KKDW companies providing profit returns in the form of dividends to the parent agency,“ he told reporters after delivering the summary of the KKDW Retreat at a hotel near here today.
He said among the subsidiaries that reported profits are RISDA Estate Sdn Bhd, which recorded a profit of RM7.1 million, Kolej RISDA Sdn Bhd (RM1.26 million), Sinergi Perdana Sdn Bhd (RM6.3 million), KETENGAH Holding (RM8.66 million), KETENGAH Perwira Sdn Bhd (RM14 million), and PERDA Venture Incorporated (RM2.7 million).
Ahmad Zahid added that KKDW also aims for all regional development authorities under it to be able to finance their management costs and corporate social responsibility (CSR) activities without budget injections from the Ministry of Finance and KKDW within the next 10 years.
“The budget for KKDW for 2024 is RM11.55 billion. I believe that in the next 10 years, we can project a certain percentage reduction in the budget,” he said.
